E-mini Dow Jones Industrial Average (YM) Futures Technical Analysis – 27109 – 27683 Next Target Zone

March E-mini Dow Jones Industrial Average futures are trading slightly higher shortly before the cash market opening on Tuesday. The market is being underpinned by expectations of a 25 to 50 basis point rate cut by the U.S. Federal Reserve later this month. However, gains are likely being limited by disappointment in the G7 central bankers’ inability to agree on a coordinated interest rate cut.

At 14:18 GMT, March E-mini Dow Jones Industrial Average futures are trading 26682, up 214 or +0.81%.

The draft of a statement by G7 finance ministers and central bank governor did not specifically call for new government spending or coordinated interest rate cuts.

Daily March E-mini Dow Jones Industrial Average

Daily Technical Analysis

The main trend is down according to the daily swing chart. A trade through 24675 will signal a resumption of the downtrend. The main trend will change to up on a move through 29543. This is highly unlikely but there is room for a rally into the nearest retracement zone.

The major support zone is 25498 to 24543. This zone stopped the selling at 24675 on Friday.

The short-term range is 29543 to 24675. Its retracement zone at 27109 to 27683 is the primary upside target. Since the main trend is down, sellers are likely to come in on a test of this zone. Sellers are going to try to form a secondary lower top. Buyers are going to try to take out this zone and turn it into support.

Daily Technical Forecast

Based on the early price action and the current price at 26682, the direction of the March E-mini Dow Jones Industrial Average the rest of the session on Tuesday is likely to be determined by trader reaction to the downtrending Gann angle at 26471.

Bullish Scenario

A sustained move over 26471 will indicate the presence of buyers. If this move is able to generate enough upside momentum then look for a surge into the 50% level at 27109. Look for sellers on the first test of this level. Overtaking it could trigger another surge into the Fibonacci level at 27683. Sellers are likely to show up on a test of this level too.

Bearish Scenario

A sustained move under 26471 will signal the presence of sellers. If this move is able to create enough downside momentum then look for the selling to possibly extend into an uptrending Gann angle at 25699, followed by the major 50% level at 25498

Published by

James Hyerczyk

James A. Hyerczyk has worked as a fundamental and technical financial market analyst since 1982. His technical work features the pattern, price and time analysis techniques of W.D. Gann.